| India, French firms to buy NYSE-listed firm |
MUMBAI, India, May 21 (Xinhua) -- Indian Tata AutoComp Systems (Taco) and French auto parts maker Valeo are believed to be in preliminary stages of discussions to acquire a stake in New York Stock Exchange (NYSE)-listed ailing automotive supplier Visteon Corporation, news website businessstandard.com reported here Monday.
The acquisition of a stake in Visteon, which was spun off from Ford Motor Company in 2005, may cost 1.5 to 2 billion U.S. dollars.
For Taco, a 12-year-old company that is an original equipment supplier to major Indian domestic and multinational car-makers, the acquisition has a strategic fit with its operations. The company has appointed a merchant banker and is awaiting clearance from Visteon to start due diligence, the website reported.
Valeo is also exploring all options, including a leveraged buyout of Visteon.
Even as the website quoted unnamed sources offering this information about the acquisition, it said that Tata group and Visteon officials had refused to comment on the issue.
Earlier, a UK-based auto and aircraft parts manufacturer, was in talks with Visteon. The company later dropped out as it was unable to agree to certain conditions, the website further said.
Loss-making Visteon makes electronic items, powertrain controls,engine induction, chassis and lighting for vehicle manufacturers. At present, it employs around 45,000 people in 26 countries, including the U.S., China and Germany.
The company posted a net loss of 153 million U.S. dollars on sales of 2.93 billion U.S. dollars in its first quarter ended March 31, 2007, the website further said.
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